It’s a common problem across rural America—aging hospitals and other health care facilities often lack the infrastructure and professional staff to deliver state-of-the-art medical care to patients in their communities.

But Moose Lake, Minnesota—population 2,800—is a proud exception to that rule. In October 2015, the community celebrated a significant renovation and expansion of Mercy Hospital, the leading medical center in the area. The 38 million dollar project took over two years to complete, but it enables area patients to get more of the care they need locally rather than making the one-hour drive to urban hospitals in Duluth. 

Transforming Care for Rural America

“The new wing has completely transformed the way we can serve the entire community—not just Moose Lake, but the surrounding area as well,” says Mike Delfs, chief executive officer of Mercy Hospital. The expansion includes private rooms, specialized birthing facilities, two intensive care units and a new MRI machine. 

Investing in Facilities for Communities in Need

Financing for the Mercy Hospital project was provided by a combination of public and private sources. While the U.S. Department of Agriculture provided funding through its Rural Utilities Service, CoBank and Compeer Financial from the Farm Credit System also helped finance the project, in partnership with local community banks in Minnesota. Chris Shaffner, CoBank sector vice president and manager of the bank’s community facilities portfolio, says community facilities financing complements the bank’s broader mission of service to rural America.

“The Mercy Hospital project is a tremendous success story,” Shaffner says. “It illustrates both the huge need for additional investment in community facilities around the country as well as the incredibly positive impact a project can have in a local community.”